One in four UK households will be forced into fuel poverty by the end of 2009, according to the latest report from the National Housing Federation.
Their study found that by the end of next year, an estimated 5.7 million households will be spending at least ten per cent of their income on energy bills.
Fuel poverty figures – defined when over ten per cent of household income is spent on fuel bills – have soared by 100 per cent since 2005.
The National Housing Federation research, entitled Energy Prices and Debt, said low income households would be worst hit by increases to pre-payment schemes.
The report also claimed that big energy companies charge more to those who pay for their energy through pre-payment meters, roughly five million people generally from low-incomes, rather than those who pay quarterly.
Ruth Devon, the federation’s director of campaigns and neighbourhoods department, said: “Britain is virtually unique in Europe in that our energy suppliers have been privatised and deregulated.
“The promise at the time of deregulation was that prices would fall. This has palpably not happened. It is time for ministers to regulate the market.
Chiltern’s Nathan Gladwell says: “With millions set to be pushed in to fuel poverty more help needs to be offered to those whose household incomes are already stretched to the limit.
“Energy companies rely on customer inertia, but switching energy tariffs and providers is relatively simple. By doing so, you could slash the price of your fuel bills and prevent your energy bills increasing with capped rates.”
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